Polygon’s (MATICI) performance has been dazzling and effortless over the past month. Analysts expect a 0.58-cent retracement if the price drops below $0.77.
Polygon, self-proclaimed as “Ethereum’s Internet of Blockchains” looks ready for a major move after it has skyrocketed in market value as seen in the past weeks. The flip side is that there’s still strong support to help the coin hold its value.
MATIC is set as an anticipation for a correction. However, it must still break the support. The MATIC has experienced an upward trend and has risen more than 2000% since rebounding from $0.32 low and hitting $0.98 high in July 18.
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MATIC Sell Sign Strong
It looks as though the token is basking in what’s known as overbought territory. A sell signal has been remarkable in the Tom DeMark (TD) Sequential indicator on MATIC’s daily chart. This indicator displays nine green candlessticks. It also forms a bearish pattern that signals a correction. Two red candlesticks, which appear to trade below one another, supported the weak outlook.
MATIC is still moving, but it has Parabolic SAR and a strong support cluster. There’s also the retracement at $0.77 and the 100 day moving average that keep the price stable. An intraday candlestick below the critical level could cause a downtrend and result in a correction of 22% to $0.58.
Source: TradingView.com| Source: TradingView.com
MATIC: Move toward $1.20 To Gain Strength
MATIC will be able to surpass its July 18 high of $0.98 and then it can overcome its poor outlook. MATIC will be able to break that crucial resistance point and continue moving towards its $1.20 200-day moving mean.
As it prepares to move to multi-chain platforms, the token is attracting a lot more attention. Also, it has risen higher in value over the last month. In the last couple of weeks, all crypto markets recovered. MATIC has seen a recoupment and has increased as a consequence.
Polygon will soon be able to offer faster and cheaper Ethereum transactions. Polygon’s future is bright with its efforts to grow into a multi-chain network and its participations with NFT as well as its collaborations and projects, including with Stripe and Disney.
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Featured image taken from TradingView.com, chart by VOI